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Which party instigates a creditor voluntary liquidation?
– member
– director
– creditor
Now since members always start liquidation In case of voluntary by issuing appropriate resolution the answer should be member. But in book they say director. Why? Where am I wrong
ThanksWhich book are you talking about?
In a voluntary liquidation its always the members who instigate the liquidation. Directors can only recommend to the members. It becomes a creditors voluntary liquidation when the company is insolvent.Hi Both,
Instigate means start! It is indeed the directors who start the process by holding a board meeting. After the board meeting of directors there will then be a Members meeting where shareholders make the final decision by passing a special resolution. But the process is kick started “instigated” by the directors.
I hope this clarifies.
Vijay
Thanks sir
@irphern this question is their in BPP revision kit . I found various questions their where they are playing with English language.
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